We wanted to take a minute to highlight our LPL Research team in their latest edition of LPL Market Signals that we find hits many key points to consider in the ever-changing market climate.
Some key points include:
- Despite the recent selling pressure, the broader market’s uptrend off the October lows has not been broken and structural damage has been minimal. The silver lining to the sell-off is that overbought conditions have now been reset.
- Rising rates due to the market’s repricing of a potential higher for longer monetary policy path have weighed on risk appetite. Benchmark 10-year Treasury yields have now cleared key resistance at 3.90%, elevating upside risk on yields.
- For the week ahead, there will be no shortage of Federal Reserve commentary and data coming will be closely watched, especially given last week’s hotter-than-expected consumer and producer inflation reports.
These factors have allowed investors to begin charting a more positive path forward, which we believe will continue despite some potential choppiness in the market. We continue to favor U.S. equities and increasing some exposure to international sectors again as those markets have begun to show some signs of life as inflation looks to be peaking in the U.K. and Europe as well.
We maintain daily communication with our LPL Research team as well as key economists and investment leaders and have made some adjustments to our management portfolios that fall in line with current commentary.
As you know, part of our relationship with you is ensuring your assets are positioned within your defined risk profile given your desired goals for each account while continuing to navigate the ever-changing market landscape. Our finger is on the pulse!